BT raises guidance for retail arm
BT today said profits growth at its retail arm would be three times higher than market analysts had been expecting at the start of the year.
The improved guidance for the current financial year came as BT shed more light on the performance of its retail businesses, such as its arm serving small and medium sized enterprises (SMEs).
It now achieves just 9% of profit-generating revenues from traditional voice calls, as the company looks to diversify in the face of strong competition from internet operators and rival telecoms firms.
The BT Retail arm, which includes the company’s fast-growing broadband operation, has annual revenues of £8.5bn (€12.6bn), with 42% coming from BT Business - which serves the SME market – conferencing arm BT Enterprises and BT Ireland.
BT pointed out today that the three units accounted for nearly 60% of underlying profits at the retail division.
BT Retail chief executive Ian Livingstone said: “Today’s guidance shows that BT Retail has turned around and is set for further profits growth whilst investing in the future. The division is making great progress in every area and not just in the consumer space.”
The guidance to the London market highlighted profits percentage growth in the teens, around three times higher than analysts predicted at the start of the year. The division also expects growth in 2007/08, in contrast to market expectations for a slight fall.
